Kali Metals Limited (ASX:KM1) Expands Pilbara Gold Tenure
Acquisition and Project Expansion
Kali Metals Limited (ASX:KM1) has entered a binding agreement with Florance Resources Pty Ltd to acquire tenements E45/6429 and E45/6430, expanding its Marble Bar Project and Pilbara footprint by approximately 19 km². This acquisition increases the gold-in-soil anomaly trend by 80% from 5.1km to 9.5km, adjacent to the 100%-owned Marble Bar Gold-Lithium Project. The company aims to build on the Sherman and Tiger Prospects, which already show surface gold mineralisation.
Florance Transaction Details
The acquisition primarily involves scrip consideration, with Kali acquiring 100% of Florance Resources Pty Ltd’s issued capital. The transaction includes $30,000 in cash and $200,000 worth of ordinary shares based on a five-day vwap prior to execution.
Executive Comments
Paul Adams, Managing Director of Kali Metals, stated, “Kali is very pleased to have finalized negotiations to acquire exploration licences E45/6429 and E45/6430 from Florance Resources. With gold prices reaching record highs this month, Kali is maintaining a key focus on the gold prospectivity of its 100%-owned Marble Bar Project in the Pilbara. This new acquisition bolsters Kali’s landholding in this highly prospective gold region. The recent exploration results at Marble Bar have been extremely promising. Reconnaissance to date has identified two Prospects (Tiger and Sherman) with gold-bearing quartz veins on surface measuring up to 7m in width, 120m in length and 4.0g/t on surface, and we have only mapped 10% of our recently discovered >9km gold-in-soil anomaly. Our increased gold footprint in the Pilbara gives the Company the best chance to identify and define potential gold targets for future drilling, and we look forward to commencing exploration on these promising new tenements.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.